“Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials. Through this acquisition, we will create the first New York-based house of modern luxury lifestyle brands, defined by authentic, distinctive products and fashion innovation.”

Kevin Wills, the chief financial officer of Coach, explained that it would reduce the sales at Kate Spade, ranging from its wholesale business to its online sales. The goal is to optimize “Kate Spade’s supply chain network.”